Sheldon Adelson who owns Las Vegas Sands Corp. (NYSE:LVS) had secretly purchased a Las Vegas publication group via a shell company. After his ownership of the Las Vegas Review-Journal was finally announced, the staff of the leading newspaper in the city has had difficulties in having their factual news reports mentioning the billionaire casino mogul published. Apparently a number of references were removed leading to vociferous demands for guidelines by the staff of the publication, for covering news about Mr.Sheldon Adelson and his family.
Indirect Purchase
Las Vegas Sands Corp. (NYSE:LVS) has bought the local city tattler via a shell company, New Media Investment Group. The shell-company had bought The Review-Journal as a part of a bundle of newspaper assets for $102 million in 2015. Of the bundled purchase, another company, Adelson-backed venture, News+Media Capital Group LLC had paid $140 million to own The Review-Journal and a handful of other assets in the package.
There was much mystery created at the time of the purchase in early December with Adelson’s ownership not revealed to the staff of The Review-Journal. The newspaper’s operations are managed by Gatehouse Media, which is a subsidiary of New Media Investment Group.
In a run-up by the staff of Las Vegas Sands Corp. (NYSE:LVS) owned newspaper, speculations surfaced that the owner remained anonymous because of the political situation.
The Review-Journal wields strong influence in the electoral state and hence it was speculated that the purchase was motivated by political affiliations.
Sheldon Adelson who runs Las Vegas Sands Corp is known for his Republican donations and hence eventually when the staff at The Review-Journal was apprised of his ownership, they were given and advisory to follow by an ombudsman, David J. Butler, who is the editor at The Providence Journal in Rhode Island.
Nine-rules
The staff at the Review-Journal was provided with a list of requirements which directly or otherwise indicated that Adelson and his family should always appear in positive news, when covered by the employees of Review-Journal.
After negotiations the staff have finalized on nine guidelines. One of the stipulations made by the staff is for a declaration of Las Vegas Sands Corp. (NYSE:LVS) owner that he now owns The Review-Journal as well as sufficient disclosures about political interests.
